Earnings Update: FDC International Hotels Corporation (TWSE:2748) Just Reported And Analysts Are Trimming Their Forecasts

As you might know, FDC International Hotels Corporation (TWSE:2748) recently reported its annual numbers. It looks like the results were a bit of a negative overall. While revenues of NT$2.4b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.7% to hit NT$2.76 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for FDC International Hotels

Taking into account the latest results, the most recent consensus for FDC International Hotels from twin analysts is for revenues of NT$2.64b in 2024. If met, it would imply a meaningful 12% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 48% to NT$3.96. Before this earnings report, the analysts had been forecasting revenues of NT$2.96b and earnings per share (EPS) of NT$4.91 in 2024. Indeed, we can see that the analysts are a lot more bearish about FDC International Hotels' prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Despite the cuts to forecast earnings, there was no real change to the NT$92.67 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that FDC International Hotels' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 0.6% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 10% per year. FDC International Hotels is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on FDC International Hotels. Long-term earnings power is much more important than next year's profits. We have analyst estimates for FDC International Hotels going out as far as 2025, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for FDC International Hotels that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.